Publication

In recent months, economic policy around the world has taken a turn for the worse and according to some economists, the global economy may be headed towards another recession. If that were to happen, the Great Recession of 2008-09 may turn into the Great Double-dip Recession of 2008-11. This may degenerate into a depression – the first since the late 1930s. The main reason for this unhappy turn of events is the policy-induced weakness in aggregate demand. This is more evident in Europe but may also happen in the US.